NEIGHBORHOOD REPORT: EAST SIDE

NEIGHBORHOOD REPORT: EAST SIDE; Trying to Keep the U.N. United, Within City Borders

By BRUCE LAMBERT

Published: May 22, 1994

Although the United Nations has been wedded to New York for nearly 50 years, intense competition erupted in the 1990's to lure prized agencies like Unicef and the United Nations Development Program to the suburbs and even overseas. City officials, fearing the diplomatic equivalent of losing the Brooklyn Dodgers, redoubled efforts to keep the agencies firmly rooted on the banks of the East River.

Now those efforts are starting to pay off, local officials say. The city has found a new home for Unicef, which wanted to relocate, and is pursuing other footloose agencies. City officials are also encouraged by renewed real estate activity around the United Nations complex.

And as the world body redefines its role in the post-cold-war era, Secretary General Boutros Boutros-Ghali is seeking more unified agency operations, which bodes well for New York.

"The U.N. is a franchise industry for New York, and it enhances our reputation as an international city," said Lance Ruiz Carlile, vice president of the city's Economic Development Corporation.

The exploration of new sites originated because of space needs as well as cost pressures in the early 1990's, when the United Nations was strained by delays in aid from the United States and the collapsing Soviet Union.

Unicef, which decided to stay in Manhattan last fall after reviewing 75 proposals for other locations, has recently chosen 633 Third Avenue for its expansion site. The United Nations Development Corporation, a city and state agency, is buying the building from the Travelers Companies for Unicef for an undisclosed price. The children's aid agency will occupy 18 of the 41 floors as a condominium.

Unicef will continue in its main building, the nearby 3 United Nations Plaza, also owned by the U.N. Development Corporation. As an additional incentive to stay, Unicef will get the deed when the bonds are paid off in the year 2026. Community Board 6 approved the plans last week. Unicef has 900 jobs in its headquarters; that is expected to grow to 1,500 in coming years.

Several other agencies hunting for sites may follow to 633 Third Avenue. "Unicef's decision gives us a much better chance to keep the others," Mr. Carlile said. "Its lead makes the case for efficiency and consolidation."

New plans for a 23-floor diplomatic office building at 871 First Avenue, opposite the United Nations, signal private confidence in U.N. growth, despite the slumping real estate and construction market. Albanese Development Corporation, a private company, plans to start the project this fall and says it is negotiating with several countries about occupying the building.

But the rivalry for agencies is not over. Germany made a lucrative offer, including free rent and $184 million for relocation, to entice several agencies to Bonn. A plum is the United Nations Development Program, which aids overseas development. "It's not a household name like Unicef, but it has even more jobs, about 1,200," said Mr. Carlile. No action has been taken, and officials say that the longer the offer lingers, the more likely the agency will stay put.

"We have a very good relationship with the city of New York," said Juan Carlos Brandt, a spokesman for the Secretary General. "The Mayor's office is dedicated to easing our problems, and we're very happy to be here." BRUCE LAMBERT

Chart: "ECONOMIC IMPACT: United Nations By the Numbers" Annual spending in New York by the United Nations, its agencies, missions, consulates and allied diplomatic activities: $1.5 billion Number of local employess: 50,000 Number of consulates and missions in the city: 184 missions, 97 consulates Annual guided tour visitors to the U.N.: 500,000 (Sources: United Nations, New York City Commission for the U.N. Consular Corps)